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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (48861)	11/14/2001 8:16:03 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 54805

he PSR has never really provided much information for me unless I have an idea what type of net margins the company is capable of. if you are worried about comparing apples and oranges...you don't have to worry. you compare apples to apples. that is, you compare Micron's PSR today vs its own PSR in 1990; you do not compare Micron's PSR to MSFT's. one of the reasons the PSR can be useful in looking at cyclicals is that when earnings trough, they can be very low or negative. however, the sales level is less volatile than earnings. e.g., take a cyclical like Cisco--its revenues fell 32% YoY, but earnings fell 89%.